Tax Roundup, 4/1/16: No fooling. Taxpayer litigates $3.48. “At least!”

April 1st, 2016 by Joe Kristan

Accounting Today Visitors: Click here for the laundry appraisal discussion.

 

348It’s the principle of the thing. Well, technically, it’s the interest. Texas is known for big things. A taxpayer from Texas made a big thing in Tax Court out of a very small thing in a decision released yesterday. Judge Goeke explains (my emphasis):

The parties have largely settled the disputed interest, but, as we interpret her position, petitioner continues to assert that she is entitled to interest on $87.08 for at least one year.

That’s not even “she is entitled to 87.08.” It’s “interest on $87.08 for at least one year.” Let’s do the math.

At the current IRS overpayment rate of 4%, the taxpayer insisted the Tax Court resolve a dispute over $3.48. At least.

It didn’t go well:

One might find a dispute of such a small amount trivial, but petitioner is very earnest. Nevertheless, for various reasons petitioner’s claim is not properly remedied by abatement of interest, as we will explain.

No word on whether an appeal is in the works.

The Moral? Sometimes a molehill is just a molehill. Even in Texas.

Cite: Kappos, T.C. Memo. 2016-59

 

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Russ Fox begins the Bozo Tax Tip countdown with Bozo Tax Tip #10: Email Your Social Security Number! “Seriously, use common sense! Would you post your social security number on a billboard? That’s what you’re doing when you email your social security number.”

Paul Nieffer, When to Take “Extra” Investment Interest? “I see many more farmers now with investment brokerage accounts.  Some of these farmers have borrowed against these accounts and the margin interest paid is considered investment interest and the tax deduction may be limited.”

William Perez, IRS Launches Contest to Design Futuristic Online Service. “‘The goal of this challenge,’ according to details found at the Tax Design Challenge page at Challenge.gov, ‘is to reimagine the taxpayer experience and design the taxpayer experience of the future.'”

Kristine Tidgren, What’s Been Happening at the Iowa Legislature? (AgDocket). Turtles are involved.

Annette Nellen,2015 Tax Legislation Changes – Lots of Them! “In 2015, over 15 federal laws were enacted, making over 150 changes to the federal tax laws!”

Keith Fogg, When is the Statutory Notice of Deficiency Issued by an Authorized Delegate of the Treasury Secretary (Procedurally Taxing). “What is somewhat remarkable about the remand is that it appears Mr. Muncy made tax protestor type arguments yet convinced the 8thCircuit to issue the remand.”

Jason Dinesen, Taxation of Incentives Received from a Bank. “You open a savings account at a bank and they give you a toaster or a cooler or a coffee cup as a gift. Is this taxable?”

TaxGrrrl, Man Found Guilty Of Selling Stolen Patient Info Used To File False Tax Returns.

No, that about covers it. Win Powerball Lottery, Get Sued, Go Bankrupt, Any Questions?  (Robert Wood)

 

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Kyle Pomerleau, How Would the Presidential Candidates’ Tax Plans Impact Capital Gains? (Tax Policy Blog):

For those taxpayers over $250,000, capital gains would be treated as ordinary income. Since ordinary income tax rate go up under the Sanders plan, the tax rate on capital gains for those earning over $250,000 would go up by a lot. The top marginal tax rate on capital gains would go up from 23.8 percent to 54.2 percent. This is a much higher rate than what we have seen in the United States on capital gains in the past and combined with state and local taxes on capital gains, would make our rate the highest in the developed world.

But think of all the oool free stuff!

 

Howard Gleckman, Note to Federal Tax Reformers: Don’t Forget the States (TaxVox). “Eliminating tax preferences would also wipe out the federal deduction for state and local taxes, a step that could increase voter pressure on states to lower their taxes.”

TaxProf, The IRS Scandal, Day 1058. More on Lois Lerner’s links with the Kafka-esque “John Doe” proceedings in Wisconsin.

 

Kay Bell, Letter from Trump lawyers confirms IRS audits. “Also provides GOP presidential front-runner a legal excuse for not releasing tax returns.” I think Kay misspelled “lame.”

A correspondent suggests that the taxpayer confidentiality rules be amended to allow anyone to access presidential candidate tax returns. I agree. I would further require that all candidates — and all elected federal officials — be required to prepare their returns in a live (and then archived) webcast, with a running comment bar to enable us all to “help.” Ideally, they would have to do it by hand, Robert D. Flach style.
News from the Profession. Texas Accountant Emerges as Early Contender for 2016’s Worst Person (Caleb Newquist, Going Concern). “Specifically, Harris allegedly instructed nurses to give hospice patients overdoses of medications like morphine to hasten their deaths.”

 

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